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Insolvency Law Reform Act: update

Baker & McKenzie Alert Client Alert 24 AUGUST 2016 Download Forward Contact Us Visit Our Website Insolvency Law Reform Act: update The Hon Kelly O'Dwyer MP, the Minister for Revenue and Financial Services, announced yesterday that the Insolvency Law Reform Act 2016 (Cth) (ILRA), which was set to commence on 1 March 2017, will now commence in two stages as follows: • Stage 1 on 1 March 2017; and • Stage 2 on 1 September 2017. The major reforms - which will see insolvency processes change and amend the Corporations Act 2001 (Cth) including to facilitate enhanced creditor empowerment and democracy in formal insolvencies - will be contained in Stage 2 now commencing on 1 September 2017. These amendments will also be accompanied by the Insolvency Practice Rules (Rules) which are yet to be released. Purpose of ILRA Briefly, the purpose of the ILRA is to provide a more modern and efficient process of insolvency procedures by harmonising the rules to: • remove unnecessary costs and increase efficiency in insolvency administrations; • align the registration and disciplinary frameworks that apply to registered liquidators and registered trustees; • align a range of specific rules relating to the handling of personal bankruptcies and corporate external administrations; • enhance communication and transparency between stakeholders; • promote market competition on price and quality; • improve the powers available to the corporate regulator to regulate the corporate insolvency market and the ability for both regulators to communicate in relation to insolvency practitioners operating in both the personal and corporate insolvency markets; and • improve overall confidence in the professionalism and competence of insolvency practitioners. Stage 1 - 1 March 2017 1 March 2017 will see the commencement of the provisions under the ILRA relating to: • professionalism and competency of insolvency practitioners; and • practitioner registrations and discipline provisions and enhancements. Stage 2 - 1 September 2017 1 September 2017 will see the commencement of the provisions under the ILRA, and the Rules, relating to: • reforms to the insolvency administration processes; • enhancing efficiency; and • improving communication and increasing competition. Download Alert Follow us For more information Maria O'Brien Partner, Sydney maria.o'brien @bakermckenzie.com Peter Lucarelli Partner, Melbourne peter.lucarelli @bakermckenzie.com David Walter Partner, Sydney david.walter @bakermckenzie.com Heather Sandell Special Counsel heather.sandell @bakermckenzie.com Disclaimer This communication has been prepared for the general information of clients and professional associates of Baker & McKenzie. You should not rely on the contents. It is not legal advice and should not be regarded as a substitute for legal advice. To the fullest extent allowed by law, Baker & McKenzie excludes all liability (whether arising in contract, negligence or otherwise) in respect of all and each part of this communication, including without limitation, any errors or omissions. This may qualify as "Attorney Advertising" requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome. Baker & McKenzie International is a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a "partner" means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an "office" means an office of any such law firm. This email is sent by Baker & McKenzie (ABN 32 266 778 912), an Australian partnership and member of Baker & McKenzie International, a Swiss Verein. The contents may contain copyright. Personal information contained in communications with Baker & McKenzie is subject to our Privacy Policy and the obligations of the Privacy Act. Emails sent to Baker & McKenzie are subject to automated email filtering. Should you receive this email in error, please telephone us on +61 2 9225 0200 or email our Helpdesk.

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